The British Bankers Association has welcomed today's report from City watchdog, the Financial Services Authority, into mis-sold interest rate swaps, and has said their members will work with customers affected by the scandal, "prioritising those with the greatest need."
The announcement today will give clarity to businesses and will enable the banks to put in place the steps needed to resolve each case for customers. Where customers have suffered unfairly the banks have all agreed that they will put it right.
Banks will be contacting those companies affected shortly, prioritising those with the greatest need. Any business which is currently facing financial distress and is seeking a suspension of payments should get in touch with their bank immediately.
The City watchdog found that 90% of interest rate swaps sold to small businesses were mis-sold, and customers are entitled to compensation.
An FSA review found that more than 90% of so-called interest rate swaps sold to businesses were mis-sold. But what are they?